FARMER’S BANKRUPTCY.

Taranaki Daily News, 27 May 1922, Page 8

FARMER’S BANKRUPTCY.

NUMEROUS LAND DEALS. “A HOPELESS POSITION.’ ACQUIRED TARANAKI FARM. The first meeting of creditors in the bankrupt estate of Robert H. Daventy, formerly of Whangamata, farmer, was held at Auckland this week. The official assignee, Mr. W. S. Fisher, presided, and 12 creditors were present. Commenting on the fact vhat the bankrupt attributed his position largely to the failure of the legal firm of Hammond and Cracknel], Mr. Fisher said that statement was not borne out by the investigation of the books of Hammond and Cracknell. So far from the estate of that firm owing money to the bankrupt, the books showed that the bankrupt owed the firm over £3OOO. ’ Examined on oath bankrupt said he was engaged in farming till 1916, when he acquired a wood and coal business at Wanganui. He then had no liabilities and possessed between £4OO and £5OO in cash. About eight or nine months later he sold the business and acquired a farm of 129 acres at New Plymouth. He also started an auctioneering business at Wanganui, and after carrying it on for about six months disposed of it for £€fl and some allotments at Wanganui. He then went to Australia, remaining there for about two months. Bankrupt said that Hammond and Cracknell owed him about £3OOO. Mr. Fisher: Does it come to you as a surprise to learn that the accountant investigating the affairs in ths estate of Hammond and Cracknell considers you owe that estate over £3000? Bankrupt: It is an absolute surprise. Mr. Hammond frequently discussed the matter with me and knew rue money was owing. zi creditor interpellated that Mr. Hammond had informed him that bankrupt owed Hammond and Cracknell about £3OOO. A “DUMMY’ MORTGAGE. Continuing, bankrupt said that on his return from Australia he went to V» hangamata. His wife acquired a block of land there of 992 acres and sold out after about 15 months. Prior to selling out, Mrs. Daveney had built a house on the property and effected other improvements. Bankrupt then took over the Whangamatu Hotel, paying £3OO for it, but sold out after about nine months for £9OO. He then took up a farm in the locality and exchanged it for a property at Whangarei. Bankrupt came to Auckland about a year ago. He then thought he would be able to pull through. He had two or three conversations with Mr. Hammond regarding his positioh. and the latter always promised he wouljl meet any pressing claims on bankrupt's behalf. Last November, bankrupt said, he went to Kaukapakapa and tried to acquire a farm in that district in exchange for a property at Onehunga owned by his wife. He remained working on the farm for about five months, but the deal fell through. Mr. Fisher said Ife would ilke some information regarding the dealings with the Whangamata farm. Bankrupt said the property was bought by his wife with her own money. She had received a mortgage for £IGUO wnen she sold out, and had acquired with it a property at Ponsonby. That property was in the name of a certain man. Bankrupt explained that a ‘‘dummy’’ mortgage had been given to the man mentioned for the purpose of finance. It was easier to sell a mortgage than a property. DENIAL OF A MORTGAGE. In reply to Mr. Hogg, bankrupt said lie had not given a mortgage to a man named over a property at Taranaxi. Mr. Hogg produced a deed bearing bankrupt’s signature. The latter said the signature was his. but he knew nothing of the mortgage. Bankrupt also denied any knowledge of a mortgage given by him over town sections at Wanganui. He said Mr. Hammond had done all his business, and bankrupt knew nothing of the matter. He thought the Wanganui property had been sold long ago. Bankrupt said that Mr. Hammond had taken over his account at the Union Bank, and bankrupt had signed blank cheques and handed them over to Mr. Hammond, who operated on the account. Jn reply to a creditor, Mr. Fisher said that on behalf of the creditors in the. estate of Hammond and Cracknell he would have- to prove on bankrupt’s estate for the amount shown to be owing by bankrupt to Hammond and Cracknell. A creditor said he doubted if the Onehunga property was worth anything beyond the amount for which it was mortgaged. Mr. Fisher said the position looked hopeless. Bankrupt had been dealing in property very much to excess. If hi had . investigated his affairs properly at any i time during several years, he probably would have found he was not in nearly ‘I as .good a position as he fancied. It would have been better for him to have stuck to honest farming instead of specula 1 P. ee t4 n g was adjourned sine die.